Tracer

June 2010

June 30, 2010

I recently asked a store employee to tell me the difference between three different brands of the same type of product. He answered, "They're all pretty similar. Take your pick." Of course I couldn't help but ask, "So why do you carry three different brands?" He said, "I don't know. I just work here." I bit my tongue and purchased the least expensive one.

While it's easier to describe the unique quality of some products than others, just about everything you sell has something unique about it. Sometimes the uniqueness is a feature, sometimes a benefit, and sometimes it's the story behind a product.

Here are a few reasons to share the unique qualities of a product.

1. You increase the perceived value of the product. A lot of customers will pay a premium if they understand why a product is priced higher. That means that retail associates must articulate that reason, and all too often they do not. A product that is not unique is just a commodity.

2. It makes an emotional connection. Customers buy with both their head and their heart, and the heart is a bigger spender than the head. Connect the product uniqueness to the customer's heart and chances are you've made the sale.

Example: "These delicious cheeses are made by a local farmer who only uses milk from cows that have been equipped with gas-catching devices that are much better for the environment. (benefit and story)

3. It creates the customer's story. Customers love to show their friends and families what they buy, and when they can include a story behind the product it makes it that much more special. Many of you are quite good at doing this, and most of you should be.

Example: "These pictures frames are made from the South Pacific Monkey Tree and can only be harvested between four and six o'clock on a cloudy day. (story and feature)

4. It makes the product more memorable. I love when a customer comes back after looking at a product and says how they couldn't quit thinking about it. On the other end of the spectrum is when a customer comes back for something and they can't say what it is or even what it looks like. Sharing the uniqueness continues to sell the product even when the customer has left the store.

June 23, 2010

In the movie Raiders of the Lost Ark, archeology professor Indiana Jones is recruited to find The Ark of the Covenant, a biblical artifact believed to carry powerful energy and, possibly, hold the key to human existence. If you've seen the movie you know that he has to overcome a plethora of challenges, and that's just in the first half hour.

As the owners of independent stores, you too must use powerful energy to overcome the challenges in your quest for sales, profits, and financial security. Presumably you don't have to deal with evil people, snakes and large boulders in your pursuit, but you do have to overcome an ever-changing market, new technologies, national competitors and more. (This also applies to all managers, so please read on.)

Here are ten tips for you to consider in your retail journey:

1. Hire extraordinary people who want to be part of an extraordinary team. Every day it's a battle for customers, sales, and market share, and you want and need the best team you can get. Refuse to buy into everyone else's beliefs that it's hard to find good people to work retail. There are plenty of Raiders out there, but you have to go find them since most of them are not walking into your store.

2. Share your bounties. Most independent retailers say they can't afford to pay their employees at competitive rates. I agree. They can't afford to if they're going to have an extraordinary team. I believe they need to pay above market, which should include a variable element so employees are rewarded for store success.

3. Stay current. As an indie retailer you should have a great website, an active presence on Facebook, manage your Yelp account and other feedback sites, and regularly communicate electronically with your customers. Some retailers will need to start to Tweet more, use more online video, and using or testing Foursquare. Don't do any of these until you've done the first list.

4. Stay fresh. Regularly update primary displays. Give your walls a fresh coat of paint. Keep finding new and exciting products and lines nobody else has. Boring is death to the independent retailer5. Work with other Raiders. Find vendors and supplies committed to helping independent retailers succeed. That doesn't mean they don't sell their products elsewhere, but they give you the tools and opportunities to compete. If they don't, consider dumping them.

6. Embrace the database. In the past your most valuable asset was your product inventory, but today it's your inventory of customers. There are too many companies out there vying for your customer's attention and business for you not to put great effort into creating long-term on-going relationships with your customer.

7. Leverage your people. Use your staff beyond the floor. You don't have to run your Facebook page yourself; you can assign it one of your younger employees. No, you're not giving up control or letting the staff decide how customers are engaged online. You're tapping into the power and skills of your extraordinary team. Everyone on your team should own something.

8. Stop procrastinating. If you know you need to do something then either find the time, find someone else to do it, or drop it and move on. It's incredibly sad and frustrating when I talk to retailers who are going under and they keep telling me about all of the things they meant to do.

9. Focus on selling. I always remind my audiences that we're in the business of selling. If customers are buying - we're selling. Selling your wonderful products to people is a fabulous thing. Bugging people in your store and trying to push products isn't. They're not the same and it's important for your people to understand that, and that starts with you.

10. Be bold. Try a lot of things and keep what works. You may not have to dodge boulders the way Indiana Jones did but there are plenty of other obstacles that will mow you over if you're not moving forward.

11. Always go above and beyond for your employees and customers. It's truly what separates the Raiders from the rest.

How about it, Indie Owner? Are you ready for this year's retail adventure?

June 16, 2010

They walk into your stores in hopes of not being recognized. They pretend to be looking at products when they're really casing the goods. As a matter of fact, they've targeted your store specifically because of the goods. A few employees may try to help them, but of course they're "just looking." They're not in your store to make a purchase; they are there to rip you off.

And when the right opportunity strikes they make their move. You can try to stop them, but eventually one or two will succeed. The only way to truly protect your most valuable asset is to be proactive before the thief even hits the store.

Am I talking about shoplifters? No, I'm talking about a different kind of thief. While it is certainly painful when a shoplifter hits your store for hundreds of dollars worth of products, it's nowhere near the damage that this other thief does.

The worst thief is the owner, manager, or recruiter who is actively out to steal your best employees. Losing a star employee can cost a company up to five, and sometimes even six, figures. Some studies show that it costs an average of two times a manager's compensation to replace them. Sure, everyone is eventually replaceable, but the loss of knowledge and skill can financially impact a business for a long time.

The thieves are coming out again. As the economy improves more people are changing jobs. As a matter of fact, in the last three months more workers voluntarily left their jobs than were laid off, something that hadn't happened for the previous 18 months. People are feeling better about leaving one company for another.

This means that we have to make sure we do everything we can to hold on to our most valuable assets, the employees we want and need in our company. Believe me, if you're an above average retailer other retailers want your best people, and it's up to you to keep them.

Although people certainly do leave jobs for more money, studies show that more people leave their jobs because they feel unappreciated, they're not being challenged, or they have a poor relationship with their manager.

Engaging, involving, and challenging employees is one of the best ways you protect your assets. Focusing more on the opportunities of the future and less on the challenges of the past is also important. Money is still important, so it's important to make sure that your current compensation rates are at or above the going market rates. Last but not least, let your employees know how valuable they are to you now and into the future.The best way to keep the thieves at bay is to continue to show the love. You know, that works on the shoplifters, too!

June 09, 2010

One of the differences between good and Extraordinary retail associates is that Extraordinary associates use assumptive language. Extraordinary retail associates know that their store is full of wonderful products and that a customer who walks in the door is likely there to shop, not just kill a few minutes. They're not cocky or obnoxious or out to unload products on people who don't need them, they're confident.

Another difference between good and Extraordinary is the ability to help the customer visualize owning the product. Visualizing helps the customer to make a purchase, which is one of our primary responsibilities. And last but not least, it increases their conversion rate.

Here are some examples of how to use assumptive language.

Okay: All of our furniture is special order and takes eight weeks.Good: If you see something you like we can order it. It takes eight weeks.Extraordinary: We'll have your furniture delivered and set-up in just eight weeks.

Okay: You might checkout the new sundresses we just got in.Good: One of these sundresses would be nice for your vacation.Extraordinary: I have the perfect sundress for your trip to the Outer Banks. Which of these colors do you prefer?

Okay: If you buy this necklace you might want to look at the matching earrings.Good: When you buy the necklace you might also want to consider the matching earrings.Extraordinary: When you buy the necklace you're likely to want the matching earrings. Here, let me hold them up to your ear.

Okay: You might think about one of these mowers.Good: I'd consider this mower or that mower.Extraordinary: Based on what your needs are I recommend that you purchase one of these two mowers.

The stronger the connection you make with your customer, the easier it is to use assumptive language. Maybe that's another reason Extraordinary sales associate use assumptive language so often.

Here's my challenge to you. Listen to the language you and your colleagues are using with your customers and decide if your assumptive language is okay, good, or Extraordinary.

June 03, 2010

Whether it's a sports team or a store staff, team chemistry and on-floor interaction play a big part in both wins and losses. Great chemistry is one of biggest reasons the Boston Celtics have made it back to the NBA finals.Yes, I'm a lifelong Celtics fan, but you can't deny that without great chemistry this team of four experienced stars and one of the hottest players in the NBA would probably not be able to come together as a unit and play up to their very considerable potential.

Great chemistry and good team karma start at the very top. It's up to the coach, manager or owner to bring out the most in every person while at the same time getting them to work as a high-performance team.

Here are some ways to create and maintain great chemistry on your team:

1. Be clear about your expectations. Great teams win together because every person on the team knows what is needed and expected of them. On less effective teams the expectations are more vague, resulting in uneven performance among the team. Every employee should know what it takes to achieve and exceed your expectations.

2. Hold people accountable for their performance. It's hard to have good chemistry and teamwork when some employees feel they are contributing more than others. Whether someone on the team is considered your favorite or just a slacker, letting anyone contribute less than what is expected is a recipe for team failure.

3. Maintain open and productive communication. Nothing kills a team more quickly than teammates talking behind each other's back, especially if the talkers include any members of management. You can overcome this by discussing in your Daily Take Five and monthly staff meetings both team and individual strengths and areas of improvement. It's also up to each employee to not participate in unproductive conversation. Here's a simple benchmark - never talk about another person unless they are present or it's praise.

4. Take personal responsibility. Once a team starts blaming each other or outside forces for falling short they've given away the power to win. United you stand, divided you fall. Successful teams spend their time and energy figuring out how to win, not blaming outside forces or teammates for why they're losing.

5. Be a great place to work. Positive energy and positive people create positive results. One of the most important things we do as leaders is to create an extraordinary work environment. Making work fun and challenging is key to getting the most out of people. Retail, like many other occupations, can become extremely monotonous if the owner or manager allows it. It's up to us to make working at our store or business as exciting as shopping there. They truly do go hand in hand.